Key Takeaways Bank7 boosted its dividend by 12.5% to $0.27 per share, marking the sixth raise in five years.Unity Bancorp lifted its payout by 7.1% to $0.15, with sales and earnings growth expected in 2025.BayCom raised its dividend by 25% to $0.25 per share, its fourth increase in five years.After almost two months of impressive performance since mid-June, equity markets have been witnessing volatility in August amid tariff policy implementation and inflationary pressure. With volatility returning to the U ...

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words "believe", "expect", "intend", "anticipate", "estimate", "project" or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company's control that could imped ...

[PART I CONSOLIDATED FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20CONSOLIDATED%20FINANCIAL%20INFORMATION) [ITEM 1 Consolidated Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Unity Bancorp, Inc. as of June 30, 2025, and for the three and six-month periods then ended, including balance sheets, income statements, comprehensive income, changes in shareholders' equity, cash flows, and detailed notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets grew to $2.93 billion from $2.65 billion at year-end 2024, driven by increases in net loans and cash, funded by higher deposits and borrowed funds, with shareholders' equity rising to $319.8 million Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | **$2,928,523** | **$2,654,017** | **$274,506** | **10.3%** | | Net Loans | $2,353,582 | $2,233,869 | $119,713 | 5.4% | | Total Securities | $139,348 | $145,028 | ($5,680) | -3.9% | | Cash and cash equivalents | $293,733 | $180,438 | $113,295 | 62.8% | | **Total Liabilities** | **$2,608,683** | **$2,358,434** | **$250,249** | **10.6%** | | Total Deposits | $2,187,366 | $2,100,313 | $87,053 | 4.1% | | Borrowed funds | $377,107 | $220,504 | $156,603 | 71.0% | | **Total Shareholders' Equity** | **$319,840** | **$295,583** | **$24,257** | **8.2%** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2025, net income significantly increased to $16.5 million from $9.5 million in Q2 2024, with diluted EPS rising to $1.61 from $0.93, driven by a 21.9% increase in net interest income and a substantial rise in noninterest income, including a $3.6 million net security gain Key Income Statement Data (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YoY Change | Six Months 2025 | Six Months 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $28,557 | $23,424 | +21.9% | $55,808 | $47,265 | +18.1% | | Provision for Credit Losses (Loans) | $1,725 | $266 | +548.5% | $3,083 | $907 | +239.9% | | Total Noninterest Income | $5,815 | $2,033 | +186.0% | $7,916 | $3,751 | +111.0% | | Total Noninterest Expense | $13,019 | $11,980 | +8.7% | $25,630 | $24,112 | +6.3% | | **Net Income** | **$16,491** | **$9,454** | **+74.4%** | **$28,089** | **$19,040** | **+47.5%** | | **Diluted EPS** | **$1.61** | **$0.93** | **+73.1%** | **$2.74** | **$1.86** | **+47.3%** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q2 2025 was $16.4 million, up from $9.2 million in Q2 2024, driven by higher net income, with other comprehensive income primarily impacted by unrealized gains/losses on debt securities and cash flow hedges Comprehensive Income Summary (in thousands) | Period | Net Income | Other Comprehensive (Loss) Income, Net of Tax | Total Comprehensive Income | | :--- | :--- | :--- | :--- | | **Q2 2025** | $16,491 | ($93) | $16,398 | | **Q2 2024** | $9,454 | ($228) | $9,226 | | **Six Months 2025** | $28,089 | $182 | $28,271 | | **Six Months 2024** | $19,040 | ($343) | $18,697 | [Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased from $295.6 million at year-end 2024 to $319.8 million at June 30, 2025, primarily due to $28.1 million in net income, partially offset by dividends paid and treasury stock purchases - Key drivers of the change in shareholders' equity in the first six months of 2025 include net income of **$28.1 million**, offset by common stock dividends and treasury stock purchases[16](index=16&type=chunk) - The company declared and paid dividends of **$0.14 per share** in both Q1 and Q2 2025, an increase from the **$0.13 per share** paid in the same periods of 2024[16](index=16&type=chunk) - 50,000 shares of treasury stock were purchased at a cost of **$1.9 million** during the second quarter of 2025[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash and cash equivalents increased by $113.3 million, driven by $238.6 million in net cash from financing activities, partially offset by $117.9 million used in investing activities and $7.5 million used in operating activities Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($7,466) | $7,313 | | Net cash used in investing activities | ($117,850) | ($2,064) | | Net cash provided by (used in) financing activities | $238,611 | ($2,607) | | **Increase in cash and cash equivalents** | **$113,295** | **$2,642** | [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of significant accounting policies, fair value measurements, and breakdowns of major financial statement components, including securities and loan portfolios, credit quality, allowance for credit losses, derivative instruments, and regulatory capital adequacy - The company's loan portfolio is geographically concentrated in New Jersey, particularly within the counties where it operates[73](index=73&type=chunk) - During Q2 2025, the company converted a portion of its debt holdings in Patriot National Bancorp, Inc. into common stock and subsequently sold all **4.4 million shares**, realizing a gain of **$3.5 million** and releasing **$2.0 million** in credit loss reserves[63](index=63&type=chunk) - The Bank is subject to regulatory capital requirements and was considered 'well capitalized' as of June 30, 2025, with a Total risk-based capital ratio of **15.10%** against a **10.00%** requirement[120](index=120&type=chunk)[125](index=125&type=chunk) [ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=ITEM%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance and condition, focusing on the significant increase in net income for Q2 2025, driven by strong growth in net interest income, a higher net interest margin, and a one-time gain on the sale of securities, covering portfolios, asset quality, deposits, liquidity, and capital resources [Earnings Summary](index=56&type=section&id=Earnings%20Summary) Net income for Q2 2025 was $16.5 million ($1.61/share), a 74% increase from $9.5 million ($0.93/share) in Q2 2024, significantly impacted by a one-time pre-tax gain of $3.5 million and a $2.0 million credit loss release related to Patriot National Bancorp securities Key Performance Ratios | Ratio | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Return on average assets | 2.51% | 1.56% | | Return on average equity | 21.15% | 14.07% | | Net interest margin | 4.49% | 4.01% | | Efficiency ratio (non-GAAP) | 42.31% | 47.10% | - The increase in net income was attributed to a **21.9%** rise in net interest income and a **186.0%** increase in noninterest income, the latter being driven by the one-time securities sale[134](index=134&type=chunk)[138](index=138&type=chunk) [Net Interest Income](index=59&type=section&id=Net%20Interest%20Income) Tax-equivalent net interest income for Q2 2025 rose 21.9% year-over-year to $28.6 million, with the net interest margin expanding by 48 basis points to 4.49%, driven by higher yields on increased loan volume and a decrease in the average cost of interest-bearing liabilities - The increase in net interest income was primarily due to a **$192.9 million** increase in average loans and a **25 basis point** increase in the loan portfolio yield[148](index=148&type=chunk) - Interest expense decreased by **3.6%** YoY despite a **$113.6 million** increase in average interest-bearing liabilities, as the average cost of these liabilities fell from **3.37%** to **3.05%**[145](index=145&type=chunk)[148](index=148&type=chunk) [Financial Condition](index=67&type=section&id=Financial%20Condition) Total assets increased by 10.3% to $2.9 billion at June 30, 2025, from year-end 2024, led by a $121.9 million increase in total loans, particularly commercial and residential mortgages, supported by growth in deposits and borrowed funds - The loan portfolio grew **5.4%** to **$2.4 billion**, with commercial loans increasing by **$99.5 million** and residential mortgage loans by **$35.6 million**[174](index=174&type=chunk) - Total deposits increased to **$2.2 billion**, with growth across all categories, including a **$28.6 million** increase in time deposits and a **$23.8 million** increase in noninterest-bearing demand deposits[200](index=200&type=chunk) - Borrowed funds, primarily from the FHLB, increased to **$387.4 million** from **$230.8 million** at year-end 2024 to support liquidity and asset growth[203](index=203&type=chunk) [Asset Quality](index=75&type=section&id=Asset%20Quality) Asset quality indicators showed a mixed picture, with nonaccrual loans increasing to $15.8 million at June 30, 2025, from $13.1 million at year-end 2024, while potential problem loans decreased from $14.6 million to $12.1 million, and the allowance for credit losses to total loans ratio stood at 1.22% Asset Quality Metrics (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Nonaccrual Loans | $15.8 | $13.1 | $12.1 | | Potential Problem Loans | $12.1 | $14.6 | N/A | | Allowance for Credit Losses | $29.0 | $26.8 | $26.1 | [Liquidity and Capital Resources](index=81&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position, with cash and cash equivalents increasing by $113.3 million in the first half of 2025, supported by significant borrowing capacity from the FHLB and FRB, and the bank remains well capitalized - At June 30, 2025, the company had **$212.0 million** of additional credit available at the FHLB and **$225.8 million** at the FRB[204](index=204&type=chunk)[214](index=214&type=chunk) - Total available funding plus cash on hand represented **168.8%** of uninsured or uncollateralized deposits as of June 30, 2025[214](index=214&type=chunk) [ITEM 3 Quantitative and Qualitative Disclosures about Market Risk](index=85&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, with an analysis as of June 30, 2025, showing that a +200 basis point rate shock would decrease Economic Value of Equity (EVE) by 11.31% and Net Interest Income (NII) by 4.61%, remaining within Board-approved tolerance levels Interest Rate Sensitivity Analysis (June 30, 2025) | Rate Shock (bps) | Change in EVE (%) | Change in NII (%) | | :--- | :--- | :--- | | +300 | (17.53)% | (7.25)% | | +200 | (11.31)% | (4.61)% | | +100 | (5.16)% | (2.21)% | | -100 | 0.07% | 0.74% | [ITEM 4 Controls and Procedures](index=85&type=section&id=ITEM%204%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, concluding they were effective, with no significant changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective for timely and accurate reporting as required by the SEC[220](index=220&type=chunk) [PART II OTHER INFORMATION](index=87&type=section&id=PART%20II%20OTHER%20INFORMATION) [ITEM 1 Legal Proceedings](index=87&type=section&id=ITEM%201%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations - There are no material legal proceedings pending against the company[222](index=222&type=chunk) [ITEM 1A Risk Factors](index=87&type=section&id=ITEM%201A%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - Risk factors remain consistent with those reported in the 2024 Form 10-K[223](index=223&type=chunk) [ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=ITEM%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 50,000 shares of its common stock at a weighted average price of $38.78 per share under its publicly announced repurchase plan, with 634,645 shares remaining available for repurchase Share Repurchase Activity (Q2 2025) | Period | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | April 2025 | 50,000 | $38.78 | | May 2025 | 0 | N/A | | June 2025 | 0 | N/A | [ITEM 6 Exhibits](index=88&type=section&id=ITEM%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which include the CEO and CFO certifications as required by the Sarbanes-Oxley Act of 2002, and the Interactive Data Files (XBRL) - Exhibits filed include Sarbanes-Oxley Section 302 and 906 certifications and XBRL data files[225](index=225&type=chunk)[227](index=227&type=chunk)

分组1 - Unity Bancorp reported quarterly earnings of $1.2 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, and up from $0.93 per share a year ago, representing an earnings surprise of +2.56% [1] - The company posted revenues of $34.37 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 13.93%, compared to year-ago revenues of $25.46 million [2] - Unity Bancorp has outperformed the S&P 500 with a share price increase of about 20.7% since the beginning of the year, while the S&P 500 gained 6.6% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $1.24 on revenues of $31.31 million, and for the current fiscal year, it is $4.83 on revenues of $122.85 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Exhibit 99.1 Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $16.5 million, or $1.61 per diluted share, for the quarter ended June 30, 2025, compared to net income of $11.6 million, or $1.13 per diluted share for the quarter ended March 31, 2025. For the six months ended June 30, 2025, Unity Bancorp reported net income of $28.1 million, or $2.74 per diluted share, compared to net income of $19.0 million, or $1.86 per diluted share, for the six months e ...

CLINTON, N.J., July 15, 2025 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $16.5 million, or $1.61 per diluted share, for the quarter ended June 30, 2025, compared to net income of $11.6 million, or $1.13 per diluted share for the quarter ended March 31, 2025. For the six months ended June 30, 2025, Unity Bancorp reported net income of $28.1 million, or $2.74 per diluted share, compared to net income of $19.0 million, or $1.86 per diluted share, ...

Core Viewpoint - Unity Bank is expanding its community banking presence with the opening of a new branch in Madison, NJ, bringing the total number of branches to 22, thereby enhancing its retail banking footprint in New Jersey and Pennsylvania [3][6]. Group 1: Branch Expansion - The new 2,000-square-foot branch features onsite parking, drive-up banking, and a full-service ATM, aimed at providing a seamless and convenient banking experience for customers [4]. - The branch previously operated under another bank and is being updated to meet Unity Bank's high standards for a welcoming environment [4]. Group 2: Leadership and Management - Linda Kemper, Vice President/Area Manager, leads the new branch sales team, bringing extensive experience in community banking and a strong dedication to customer service [5]. Group 3: Financial Performance - Unity Bank manages approximately $2.6 billion in total assets and holds $2.0 billion in deposits, reflecting its commitment to providing exceptional financial services tailored to retail, corporate, and small business customers [7]. Group 4: Company Overview - Unity Bancorp, Inc. (NASDAQ: UNTY) is the parent company of Unity Bank, which operates 22 branches across New Jersey and the Lehigh Valley, Pennsylvania, offering community-focused commercial banking services [8].

Core Viewpoint - Unity Bancorp, Inc. has declared a cash dividend of $0.14 per common share, payable on June 20, 2025, to shareholders of record as of June 6, 2025 [1] Group 1: Company Overview - Unity Bancorp, Inc. is a financial services organization based in Clinton, New Jersey, with approximately $2.8 billion in assets and $2.2 billion in deposits [2] - Unity Bank, the wholly owned subsidiary of Unity Bancorp, provides financial services to retail, corporate, and small business customers through a branch network in various counties in New Jersey and Pennsylvania [2] Group 2: Financial Information - The declared cash dividend of $0.14 per common share reflects the company's ongoing commitment to returning value to its shareholders [1]

[PART I - CONSOLIDATED FINANCIAL INFORMATION](index=5&type=section&id=PART%20I) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201) This section presents Unity Bancorp, Inc.'s unaudited consolidated financial statements for Q1 2025, highlighting an increase in total assets to **$2.8 billion**, a rise in net income to **$11.6 million**, and growth in loans and deposits [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets%20at%20March%2031%2C%202025%20and%20December%2031%2C%202024) Total assets grew to **$2.77 billion** as of March 31, 2025, up from **$2.65 billion** at year-end 2024, driven primarily by an increase in net loans Consolidated Balance Sheet Highlights (In thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,767,943** | **$2,654,017** | | Cash and cash equivalents | $211,593 | $180,438 | | Net loans | $2,317,479 | $2,233,869 | | Total securities | $142,092 | $145,028 | | **Total Liabilities** | **$2,461,801** | **$2,358,434** | | Total deposits | $2,175,398 | $2,100,313 | | Borrowed funds | $243,292 | $220,504 | | **Total Shareholders' Equity** | **$306,142** | **$295,583** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) For Q1 2025, net income increased to **$11.6 million** from **$9.6 million** in the prior-year period, driven by a **14.3%** increase in net interest income to **$27.3 million** Quarterly Income Statement Highlights (In thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $27,251 | $23,841 | | Provision for credit losses, loans | $1,358 | $641 | | Noninterest Income | $2,101 | $1,718 | | Noninterest Expense | $12,611 | $12,132 | | **Net Income** | **$11,598** | **$9,586** | | **Diluted EPS** | **$1.13** | **$0.93** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) Total comprehensive income for Q1 2025 was **$11.9 million**, compared to **$9.5 million** in Q1 2024, primarily due to higher net income and a smaller other comprehensive loss Quarterly Comprehensive Income (In thousands) | Component | Q1 2025 (Net of tax) | Q1 2024 (Net of tax) | | :--- | :--- | :--- | | Net Income | $11,598 | $9,586 | | Other Comprehensive Income (Loss) | $275 | $(115) | | **Total Comprehensive Income** | **$11,873** | **$9,471** | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) Shareholders' equity increased from **$295.6 million** at year-end 2024 to **$306.1 million** at March 31, 2025, driven by net income and positive other comprehensive income - Key drivers for the change in shareholders' equity in Q1 2025 were net income of **$11.6 million** and other comprehensive income of **$275 thousand**, offset by dividends of **$1.4 million**[13](index=13&type=chunk) - In Q1 2024, the company repurchased **150,000 shares** of treasury stock for **$4.1 million**, with no shares repurchased in Q1 2025[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) For Q1 2025, cash and cash equivalents increased by **$31.2 million**, with net cash provided by operating activities at **$17.9 million** and financing activities at **$96.1 million** Quarterly Cash Flow Summary (In thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $17,854 | $15,762 | | Net cash used in investing activities | $(82,766) | $(3,025) | | Net cash provided by (used in) financing activities | $96,067 | $(24,527) | | **Increase (decrease) in cash and cash equivalents** | **$31,155** | **$(11,790)** | [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, fair value measurements, and portfolio composition, identifying the allowance for credit losses as a significant estimate - The company identifies the allowance for credit losses as a significant estimate, which may be affected by future changes in economic conditions and loan portfolio credit quality[19](index=19&type=chunk) - The company acknowledges risks from macro-economic trends, including interest rate environments and inflation, and notes increased competition for liquidity[21](index=21&type=chunk)[22](index=22&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=ITEM%202) Management discusses the company's Q1 2025 financial performance, highlighting a **14.3%** increase in net interest income and a rise in net income to **$11.6 million**, alongside asset quality, liquidity, and capital adequacy [Earnings Summary](index=47&type=section&id=Earnings%20Summary) Net income for Q1 2025 was **$11.6 million** (**$1.13** per diluted share), a significant increase from **$9.6 million** (**$0.93** per diluted share) in Q1 2024 Q1 2025 Performance Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $11.6 million | $9.6 million | | Diluted EPS | $1.13 | $0.93 | | Return on Average Assets | 1.83% | 1.58% | | Return on Average Equity | 15.56% | 14.49% | | Net Interest Margin | 4.46% | 4.09% | - Net interest income grew **14.3%** year-over-year, primarily due to increased yield and volume on loans[123](index=123&type=chunk) - Noninterest income increased **22.3%** year-over-year, mainly from higher service, loan, and branch fees[123](index=123&type=chunk) [Net Interest Income](index=49&type=section&id=Net%20Interest%20Income) Tax-equivalent net interest income increased by **14.3%** to **$27.3 million** in Q1 2025, with the net interest margin expanding by **37 basis points** to **4.46%** - The increase in net interest income was driven by a **$1.2 million** contribution from higher yields on earning assets and a **$1.7 million** contribution from increased average volume of interest-earning assets[131](index=131&type=chunk) - The average volume of interest-earning assets grew by **$132.5 million**, primarily due to a **$128.6 million** increase in average loans[131](index=131&type=chunk) - Total interest expense decreased by **$0.5 million** (**3.9%**) compared to Q1 2024, mainly due to a lower rate and balance on borrowed funds[133](index=133&type=chunk) [Provision for Credit Losses](index=54&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses on loans was **$1.4 million** for Q1 2025, more than double the **$0.6 million** provision in Q1 2024, primarily attributed to loan growth - The provision for credit losses for loans increased to **$1.4 million** in Q1 2025 from **$0.6 million** in Q1 2024, mainly due to loan growth[141](index=141&type=chunk) - The provision for off-balance sheet exposures was a release of **$41 thousand** in Q1 2025, compared to a **$2 thousand** provision in Q1 2024[141](index=141&type=chunk) [Financial Condition](index=55&type=section&id=Financial%20Condition%20at%20March%2031%2C%202025) As of March 31, 2025, total assets grew by **4.3%** to **$2.8 billion** from year-end 2024, primarily fueled by an **$84.5 million** increase in gross loans - Total assets increased by **$113.9 million** (**4.3%**) to **$2.8 billion** at March 31, 2025, compared to year-end 2024[145](index=145&type=chunk) - The asset growth was primarily driven by an **$84.5 million** increase in gross loans and a **$31.2 million** increase in cash and cash equivalents[145](index=145&type=chunk) - Total shareholders' equity increased by **$10.6 million** since year-end 2024, mainly due to retained earnings[146](index=146&type=chunk) [Asset Quality](index=62&type=section&id=Asset%20Quality) Nonaccrual loans increased to **$16.8 million** from **$13.1 million** at year-end 2024, driven by increases in commercial and residential mortgage segments, while potential problem loans also rose slightly - Nonaccrual loans stood at **$16.8 million** at March 31, 2025, an increase of **$3.7 million** from December 31, 2024, but a slight decrease from **$16.9 million** at March 31, 2024[174](index=174&type=chunk) - Potential problem loans, defined as performing but with non-passing risk ratings, totaled **$15.3 million**, up from **$14.6 million** at year-end 2024[177](index=177&type=chunk) [Allowance for Credit Losses and Reserve for Unfunded Loan Commitments](index=64&type=section&id=Allowance%20for%20Credit%20Losses%20and%20Reserve%20for%20Unfunded%20Loan%20Commitments) The allowance for credit losses increased to **$27.7 million** at March 31, 2025, from **$26.8 million** at year-end 2024, with the allowance as a percentage of total loans remaining stable at **1.18%** Allowance for Credit Losses Summary | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Allowance for Credit Losses | $27.7 million | $26.8 million | | Allowance to Total Loans | 1.18% | 1.18% | | Net Charge-offs (Q1) | $0.5 million | N/A | - The reserve for unfunded loan commitments remained stable at **$0.6 million** at March 31, 2025[181](index=181&type=chunk) [Market Risk](index=66&type=section&id=Market%20Risk) The company's primary market risk is interest rate risk, with sensitivity analysis showing a **12.26%** decrease in Economic Value of Equity (EVE) and a **4.33%** decrease in Net Interest Income (NII) in a +200 basis point shock scenario Interest Rate Sensitivity Analysis at March 31, 2025 | Rate Shock (bps) | Change in EVE (%) | Change in NII (%) (12 mo.) | | :--- | :--- | :--- | | +300 | (18.69)% | (6.61)% | | +200 | (12.26)% | (4.33)% | | +100 | (5.71)% | (2.22)% | | -100 | 0.51% | 0.31% | [Liquidity](index=68&type=section&id=Liquidity) The company maintains a strong liquidity position with cash and cash equivalents of **$211.6 million** at March 31, 2025, and significant additional borrowing capacity from FHLB and FRB - Cash and cash equivalents increased by **$31.2 million** during the quarter to **$211.6 million**[198](index=198&type=chunk) - The company had significant additional borrowing capacity: **$276.9 million** from FHLB, **$225.3 million** from the FRB, and **$20.0 million** from other sources[188](index=188&type=chunk)[200](index=200&type=chunk) - Total available funding plus cash on hand was **168.8%** of uninsured or uncollateralized deposits as of March 31, 2025[200](index=200&type=chunk) [Regulatory Capital](index=70&type=section&id=Regulatory%20Capital) Unity Bank continues to exceed all regulatory capital requirements, considered 'well capitalized', with a Total risk-based capital ratio of **15.23%** and a Common Equity Tier 1 (CET1) ratio of **13.98%** as of March 31, 2025 Unity Bank Capital Ratios at March 31, 2025 | Ratio | Actual | Well Capitalized Requirement | | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 13.98% | 6.50% | | Tier 1 Risk-Based Capital | 13.98% | 8.00% | | Total Risk-Based Capital | 15.23% | 10.00% | | Tier 1 Leverage | 12.05% | 5.00% | [Shareholders' Equity](index=72&type=section&id=Shareholders%27%20Equity) No shares were repurchased during Q1 2025, leaving **685 thousand** shares available for repurchase under current authorizations, contrasting with **150 thousand** shares repurchased in Q1 2024 - No shares were repurchased in Q1 2025, leaving **684,645 shares** available for repurchase under the authorized plan as of March 31, 2025[202](index=202&type=chunk)[203](index=203&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=ITEM%203) There were no significant changes in the company's market risk assessment from its 2024 Form 10-K, with interest rate risk remaining the primary market risk - There were no significant changes in the Company's market risk assessment during Q1 2025[206](index=206&type=chunk) [Controls and Procedures](index=47&type=section&id=ITEM%204) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no significant changes in internal control over financial reporting during the quarter - Management concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[206](index=206&type=chunk) - No significant changes to internal controls over financial reporting occurred during the quarter[206](index=206&type=chunk) [PART II - OTHER INFORMATION](index=74&type=section&id=PART%20II) [Legal Proceedings](index=74&type=section&id=ITEM%201) The company is subject to ordinary course legal proceedings but is not aware of any that would have a material adverse effect on its business, financial condition, or results of operations - The Company is not aware of any pending legal proceedings that would materially affect its financial position or results[208](index=208&type=chunk) [Risk Factors](index=74&type=section&id=ITEM%201A) No new risk factors are presented in this report, with the company referring to the 'Risk Factors' section within its 2024 Form 10-K - The report refers to the Risk Factors section of the 2024 Form 10-K for information on this item[209](index=209&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=ITEM%202) This section refers to the discussion of the company's share repurchase plan under the MD&A section, noting no shares were repurchased during Q1 2025 - No shares were repurchased during the first quarter of 2025[202](index=202&type=chunk)[210](index=210&type=chunk) [Exhibits](index=75&type=section&id=ITEM%206) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[211](index=211&type=chunk)[213](index=213&type=chunk)

Core Insights - Unity Bank has been recognized as one of the top-performing small banks in the United States by the Hovde Group, marking the third consecutive year of inclusion in the high-performer list, indicating strong financial management and customer service [1][3]. Group 1: Performance Recognition - The Hovde Group's 2025 report evaluates small banks with market capitalizations between $100 million and $1.5 billion, ranking them based on financial metrics such as pre-tax pre-provision net revenue, efficiency ratios, loan and deposit growth, tangible book value growth, and employee productivity [2]. - Unity Bank's recognition reflects the strength of its strategic approach, employee dedication, and customer trust, emphasizing a focus on long-term, responsible growth [3]. Group 2: Company Overview - Unity Bancorp, Inc. (NASDAQ:UNTY) is the parent company of Unity Bank, which operates 21 branches across New Jersey and the Lehigh Valley, Pennsylvania, providing community-focused commercial banking services [5].